Lack Of Mainland Property Sales Dents MTR Profit

The MTR Corporation has posted a 4.9 percent fall in annual net profit for last year, due to a sharp drop in the contribution from its mainland property business.

The company made just over HK$16 billion in net profit – down from 16.8 billion in 2017. Total revenue dropped 2.7 percent to HK$53.9 billion.

The company had no projects on the mainland, but profit from property development in Hong Kong more than doubled to almost HK$2.6 billion after the company sold three residential projects last year.

The company said it aims to tender out three property projects in the coming 12 months or so, providing around 4,500 flats.

The company's outgoing CEO Lincoln Leong said the development plan for its Siu Ho Wan depot site in Lantau has been approved by the government.

He said the site is to have 14,000 public and private homes and the MTR is in talks with the government on the best way forward on this.

Leong said the company's profit from Europe was down due to various problems like poorly performing infrastructure and an industry-wide slump in Britain.